Flutter Entertainment reports 13% Q3 revenue increase on US and local hero growth
London-listed operator confirms 16% rise in average monthly players and 52% FanDuel revenue spike in yet another strong quarter
Flutter Entertainment has reported a 13% year-on-year (YoY) Q3 2023 increase in its group revenue on a constant currency basis to £2bn off the back of igaming and customer acquisition growth.
Delivering its latest trading update, the London-listed operator confirmed a 4% YoY constant currency increase in group sports betting revenue during Q3 to £1.1bn, despite a 12 percentage point impact from adverse sports results on a year-over-year basis.
Group igaming revenue jumped 26% YoY in Q3 to £914m, from a prior Q3 2022 high of £748m.
Flutter’s average monthly player numbers also grew, rising 16% YoY to 11.1 million players.
In respect of sports, Flutter’s US division, of which the majority of revenue is driven by FanDuel, contributed 40% of gross revenue, buoyed in part by a 37% rise in new player acquisitions ahead of the new NFL season.
FanDuel saw its igaming revenue rise by 52% YoY, with the firm confirming its number two position in US igaming, just behind BetMGM, as FanDuel’s US igaming market share rose to 23% during the period.
Excluding the US, Flutter’s Q3 revenue rose by 10% YoY despite what the firm labelled “particularly” customer friendly sports results and a declining Australian racing market.
Within this, UK and Ireland revenue grew by 11%, with customer numbers rising by 5%. In Australia, Sportsbet revenue slumped 7% YoY despite good retention of an enlarged player base, with Flutter suggesting racing market “weakness” will continue into 2024.
Flutter’s international division reported a 5% YoY uptick in Q3 revenue, with average monthly player numbers growing by 12% YoY on a pro forma basis.
Flutter Entertainment CEO Peter Jackson hailed the quarter as a strong one for the firm, despite a seasonally quieter period, lauding the impact of diversification on Flutter’s bottom line.
“We remain the number one choice for sports betting and gaming customers globally, and our 16% growth in average monthly players augurs well for our continued growth and market leadership,” Jackson said.
“We are particularly pleased by the great progress we are making in the US. We are the first online operator to achieve structural profitability, and the strong ramp in EBITDA during 2023 will continue into 2024 and beyond, as our profit margins expand materially.
“Outside of the US, our strategy ensures we can capitalise on the many growth opportunities which exist across our global markets. Our diversified portfolio of leading brands are well positioned to adapt to challenges and opportunities in their respective markets.
Updating the market on Flutter’s dual listing in the US, Jackson confirmed an expectation that this process will complete in Q1 2024, with “significant benefits” for the firm in accessing US capital markets.
“Overall, the significant potential for US growth and ability to leverage scale benefits across our diversified portfolio outside of the US, underpins our confidence in our significant and sustainable long term earnings growth potential,” Jackson concluded.